Earnings call transcript Q4 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon. Thank you for attending today's Boyd Gaming Fourth Quarter Conference Call. My name is Tamia and I will be your moderator for today. All lines will be in mute during the presentation portion of the call with an opportunity for questions-and-answers at the end. [Operator Instructions]

pleasure Hirsberg, the Chief Executive my your over Financial now Josh host, Vice is to conference pass to Officer. It President and

Josh Hirsberg

our call. operator. quarter you, Good everyone, welcome Thank afternoon, earnings to conference and fourth

our Joining me this Chief call on Officer. President Keith afternoon Executive and is the Smith,

update within today's no forward-looking Our our statements will statements comments that revise date, Litigation undertake Securities or are are statements today Private statements. to Reform of and forward-looking in obligation we comments forward-looking as include the the Act. All

certain Actual SEC, projected results in may in our any differ the and materially may that from forward-looking those statement. uncertainties, There risks with results. disclosed those including impact our filings are

today, During we will our financial call to reference non-GAAP make measures.

to our furnished refer a We measures, at due to project non-GAAP forward-looking For and do special GAAP SEC financial earnings our non-GAAP available inability provide financial release X-K Form a of and to complete expenses. to our certain the both investors.boydgaming.com. charges not and today please of are press to of reconciliation which reconciliation measures historical

being call. live is website also section after our be of the Investor webcast replay call at Relations of will boydgaming.com, shortly completion the available Today's for this and in

So, over Keith? turn I now the with that, to like to would call Keith Smith.

Keith Smith

XXXX we momentum Good clearly operating met have XXXX. we the Josh. as XXXX's We ambitious sustained One throughout began the afternoon later, year record with that Thanks everyone. goal results. of surpassing built we challenge

strong the with $XXX performance of of $X.X billion and the EBITDAR We revenues was fourth And with $XXX of EBITDAR conclusion year million. record delivered and in once revenues to again of company-wide million a a $X.X record record XXXX. billion quarter

operating efficiency both maintained with XX% and quarter margins also for We full year. operating of our fourth the company-wide

tribute in building successfully a current operating core environment. focused growing remain on among XXXX as our loyalty the while managing revenues Our results expenses and teams we are our to for customers

softness experience did markets. the performance, continued and record fourth and another that the was headwinds our we in year, year-over-year during South at XXXX While in some Midwest times with quarter

South management offset However, segments, strong Sky and and from Midwest the softness fees performances in was two our Casino. from from our by gaming Nevada River more growing online region contributions than

review more we the Las Downtown segments. quarter year detail. in Las each and let's Now, Locals segment Nevada, EBITDAR record finished fourth both in In with performances Vegas our Vegas

our was Locals hotel, business, strong EBITDAR grew particularly non-gaming we Starting the strongest X% last Las our beverage, gains segment, increased with over food out-of-town revenues including and year's customers from Valley. among growth Vegas records Locals in properties, across entertainment. Throughout as and both and the with tourism benefited

core by customers healthy, declines but retail play. from remained Play in was our offset

job an exceeding our margins during Our segment outstanding growth strong on Locals the flow-through revenue in with quarter, teams did delivering XX%.

Vegas strong record clearly XXXX, are Las than million In benefiting increase. passenger We Southern to a and people travel all-time and reached airport economy we XX more prior Southern counts Nevada, as tourism visited continues year, from levels. the XX% up to from Nevada nearly

convention the company growth well than capitalize to well-positioned meeting to rooms is and Southern XXXX than Convention business these And the more more our hotel market, with levels. continued in recover trends. Nevada on as doubled with attendance X,XXX

to segment off well. XXXX a Looking performing January in ahead, has gotten Locals start our with good

part early in changes meaningful no seen our business of XXXX. have Locals We in the

fourth an by last impressive performance, EBITDAR Vegas, Next, year's XX%. quarter nearly beating in we Downtown delivered Las record

guest throughout as throughout We continue counts Downtown traffic to see and area. strong pedestrian the the Vegas increased Las demand market

the our levels. At business fully pre-pandemic has Hawaiian now time, recovered core same is exceeding and

growing excellent hotel demand, growth to to revenues broadening property's Fremont meet put the in position has Additionally, the in while drive appeal. our recent hotel us remodel allowing at us further

expansion includes capacity, This also benefit will and a new we food branded sportsbook, FanDuel forward, Going incremental Fremont's a hall. casino slot expansion. from opened contemporary recently

and the with growth strong by from encouraged gaming expansion in both at expansion early in are the this volumes was Fremont non-gaming completed We mid-December. results since the

South, revenue contributions achieved from the and from fourth records we to Midwest as management for growing Sky thanks both quarter EBITDAR, Next, online as well and River. in fees gaming

year-over-year However, land-based and prior of our severe our performance below weather for operations the and Louisiana partially December's winter due properties. Mississippi the was quarter, year to in difficult comparisons

in some the Additionally, in the into although January. improved trends fourth play in early we quarter softness experienced quarter, these and later

online our to business. Turning

FanDuel, Our continues during over year, in football company, more from to gaming partnership benefited new million and generated season, this Interactive, XXX% contributions from on deliver which a FanDuel $XX operations results. online acquired quarter, number up Kansas prior in Pala betting the we sports Xst. we from with EBITDAR than strong approximately Louisiana as one and impressive nation's We November the

This our quarter, from fees the earned operation was quarter of first During River's of also River opening August. fee one-time development last million we following Sky million. contract, in including $XX Sky its $X management full a Casino

With compelling on Rancheria allow Sky initial of Wilton that Tribe its opening self-sufficiency. results, we with early our have is extremely River, at Sky River to during a the destination thriving achieve build levels to and develop business would strong phase. Based visitation a clearly goal vision succeeded entertainment their

the in starting potential. high-quality compelling created, realize unmet there believed market demand experience to and we're was entertainment River's Sky we have long have with We the significant

result, approximately company we expect a our fees As $XX management in River for XXXX. Sky million now generate in will

company in fourth Midwest despite in full all, challenges results. and record achieved our quarter So, our segment, and year South some

where are it difficult As we predict economic uncertainty the move into today XXXX, trends headed. persists that consumer makes to

However, January our we of we across saw business. trends about segments cautiously in three the all optimistic are

to of reinvestments business, we through in our in additional in our forward, our expansion the gaming there growth drive believe Going portfolio, organic continued and business land-based online strategic growth operations. opportunities are our

in mentioned significant have property is work Las our through highest-performing selective we good drive Fremont Downtown on properties growth where, in A existing see a the reinvestments as we expansion. opportunities Starting with markets. completed to portfolio, long-term our Vegas, and example earlier,

guests. comfortable square opened we environment gaming mid-December, casino nearly slot space, In a while increasing of for total new Fremont's XX,XXX more creating count our by XX%, feet

We also hall food added restaurants. six with FanDuel-branded Sportsbook quick-serve in a a

already both the The delivering expansion Fremont. growth revenues in non-gaming at gaming is and

forward, area, this on further helping strengthen us throughout appeal will in the our investment record to Downtown build customers downtown results our Going the segment.

demand And non-gaming to in facility guest amenities us work more $XXX at creating our million full in Chest suburban and in by casino complete spacious on expanding Once will improving advantage a land-based the Louisiana, project continues floor, early single-level New this casino. Orleans our allow XXXX, market take of parking. Treasure

land-based online and casino, acquisition our will social Pala online the took forward business, including our which grow. growth an gives with We casino online In recent of step business. continue addition our regional we growth expect to our sports, technology strategy building us in talent gaming, to and these to Interactive, investments, begin important

a to casinos to online create will just portfolio states, in long-term online our leverage limited and are believe now own While the iGaming extensive iGaming. allow operating from operation few casino profitable a potential customer we to nationwide business. us and our Owning database

to next New Stardust several our Online months. start by Pennsylvania and Jersey in transitioning platform the our We current over Casinos will

BXB partners. enhancing platform's We segment will benefit also and the features our of products, capabilities, adding new and growth and the will both BXBcustomers target in our business by which selectively us

recently and launching partnership growing we betting into betting sports Kansas with fully side, partnership Ohio successful to with states. and retail in committed our the expanded This sports remain both mobile FanDuel. On and FanDuel

Our partnership with FanDuel in one now and South states but region. all includes our Midwest

grow million approximately casino sports online Kansas. social betting, our this $XX FanDuel as in expect we And generated continue up and all, to Ohio in will operations ramps in XXXX. In EBITDAR and business

these they FanDuel, further the grows contributions, our X% nation's strengthened from valuable sports company. as we Beyond benefit growing to their will position financial stake increasingly leading betting equity in which continue as

from existing particularly While is continued also online revenues. reinvestments land-based growth our business, the and other there meeting opportunities in from convention are believe compelling, we organic revenues, non-gaming operations, hotel in and and upside

operating $XXX flow, substantial share investments. million quarter to growth strengthening We cash pursue supplemented further allowing XXXX, our we per in shareholders. while plan free to ongoing all, repurchases to dividend momentum our In and our payments our targeting continue by us are return capital in opportunities growth

our received efforts. Workplaces Greatest Last I prominent for Boyd recognition these Gaming rating in wanted America's company's note recently Listing ESG a for progress Diversity. month, on Before national as initiatives five-star received Newsweek of continued Annual we to concluding, Magazine's

our We were by through rating compiled the a perfect we company's receive Newsweek. employee our anonymous diversity of gaming and company recognized only Promoting which listing, a to efforts and are to have culture, part in central was nationwide. inclusion is surveys honored this

revenue model. opportunities. strong diversification So, and growth resiliency record of Nevada Midwest for in new conclusion, and the results fourth yet operating We overcoming in of contributions markets, quarter strength our another with of in example quarter records new softness from was both and South and portfolio our and set EBITDAR, the this our

shareholders, Pala on higher uncertainty. for the closed maintaining a as and further levels maintained operating to our teams online balance ourselves at while We the of in some significant strong our to costs margins long-term return continue growth manage acquisition of in operating And space. history capital the We to positioning highest successfully through sheet. Interactive, we economic continue

a another performance. Gaming revenue thank we In member as quarter row. for this outstanding to for team the their for and full all, the for every contributions our Boyd like strong would record and EBITDAR year concluded work year to in records year results fourth company their of set our I hard second

team's direction is predict in our our and we And successfully business. remain proven while operating the future to of manage model ability to the confident difficult economy, it the

I'd the your Josh. turn time. like Thank over for you to now to call

Josh Hirsberg

comparisons XX% results against was every to company quarter full full Thanks quarter year higher EBITDAR XXXX. yet record that the EBITDAR performance our very previous And record the quarterly than for we continued records for set Recall have in quarter very on XXXX good and those in another XXXX. more baselines. was in of we Keith. improve than XXXX and This set our our strong year with that to single

per $X.X approximately per XXXXand adjusted share. each and billion EBITDAR And XXXX, exceeded margins were $X In XX%. XXXX, in of approximated earnings share

have on customer core We focusing managing by base our our and efficiently. growing very this business accomplished

continue excellent Our an job operating and expense to maintaining do our teams managing margins. structure

operations in continue supported investments on and from online business, to ahead continued look to our we non-gaming we portfolio. we revenues further grow the our to in existing see opportunities are expansion contributions by our As XXXX, and core customers, our making focus

XXXX. from management contract XXXX Sky which will year from benefit full addition, our August In River, opened a contribution in with

Now from let's discuss a quarter. the key few items

of First, end our count of shares. X.X an capital in average million share. the at for company. million during the return share shares per program the remains million price at We $XXX stock XXX.X our year repurchased The nearly a $XX.XX quarter, priority representing actual was

of price average For per million. year an $XX.XX full we shares repurchased X.X million share, XXXX, representing$XXX at

We have approximately current $XXX million our authorization. repurchase remaining under

dividend When share per returning million ongoing while nearly program, dividend shareholders We land-based invest remain returned combined At same we quarter our during to $XXX repurchases, with that in continuing strategically committed shareholders, in our we continue program. XXXX. are will $XXX to million to we to the portfolio. capital our time our

$XXX expenditures Capital were in XXXX million.

expect capital Treasure primarily related spend capital million capital XXXX in maintenance $XXX includes million million We and to for This the project. $XXX growth in approximately $XXX Chest to expenditures. in

to Turning lease-adjusted of times. We and X.X total leverage X.X finished XXXX sheet. balance leverage the times with of

leverage. remains Our traditional times target leverage X.X

have sheet with our near-term significant maturities credit ample facility. balance remains low as flexibility under Our and capacity no we very leverage, strong

a company. will we stream model cash to of a produced all, has as and long-term. formula in operating results are growth portfolio. continue balance robust finished flow, value our for substantial we year strong shareholders, investments it to and over us to continue a in we our capital allowing So, strategic with program free diversified Thanks to considerable in create shape This and produce the initiatives, confident great return our the

now ready questions. This to we're any concludes our take remarks, and

Operator

will Q&A begin Our Macquarie. first question session. with [Operator Chad the now We comes Beynon from Instructions]

open. Your line is

Chad Beynon

a -- first afternoon. good Thanks Keith, nice well, off, congrats you guys about on talked my for Hi, quarter. taking question. Josh,

up? of to half and what given that about opportunities some you you your XXXX. selective But kind and elsewhere XXXX thinking putting the X.X about in the guide at talked selectively returns reinvestments other these of you're that You returns how double-digit you're are XXXX, and expecting times, reinvest maybe in back get Thanks. portfolio the leverage and

Keith Smith

question, Chad. Good Sure.

we think do So, opportunities we into properties continue markets we to demand. or to portfolio, have and kind our strong several what growing have with strong studied build other in of are markets

have have talk we so just future anything do go we you'll And to hear additional quarters those begin and it of projects. as by, have announce us studied about We to don't opportunities. But some today.

in can expect to future. you the hear So, more

$XX are of it are smaller-type $XX sub-$XXX them These I million-type think many million we've talked to these in and range. the projects. projects, past, about the in million

about So, of talking are we're not millions that dollars. hundreds of projects

Chad Beynon

year, fourth quarter to the And focus averaged of $XXX Thanks. in have on EBITDA we've then some and exceptional strip, Okay. coming million about Obviously, Locals in the the quarter. business some roughly per off CES you market here. this I right wanted XX%. that's up strength of somewhere maybe even that guessing strip, With between and January, back. the destination across ADRs XX% seen in guys I'm

where in leans. where table you of should it and what you guessing $XXX EBITDA from against Thanks. But help I'm on the average business us still was more million think per it about mainly convention are XXXX? quarter, to XXXX see for guys benefiting that we not from not the mainly is back of can

Josh Hirsberg

Yes.

this Chad, is So, Josh.

about for the benefit Las our when business, comes opportunities really from that that, broader think Downtown but the it's business from our the it I And of overall. also Locals we benefiting not recovery Vegas business. in market kind that only will Locals our from think

of an in drive opportunities which our incremental portfolio, kind we to well, downtown. Las meeting kind emerging that do own meeting and rooms kind occupancy hotel as look Vegas, at we business, of of recovering strip So, to the also convention only our have still help in across but again, not drives visitation or business our

making there the well. properties the there's to but Keith, add with anything you'd don't And investments as also other I have we benefit that. we if been that to like know from we've Fremont,

Keith Smith

number, No, look, than XXXX known that still more it's attendance but convention levels. I well think up year below in the significantly pretty XXXX, was prior double

continues that other both and take as properties. can Orleans of at to our the So build, several advantage we of it

attendance also will Las Downtown as said, improved. Josh visitation as convention overall Vegas to And improve and

off will to definitely able going forward. be we So, that leverage of

Chad Beynon

Appreciate Thanks. it.

Josh Hirsberg

Sure.

Operator

Thank with JPMorgan. Greff you. The next Joe question comes from

proceed. may You

Joe Greff

attribute here. results Hey to guys. the follow versus deeper and and Vegas just you maybe on Congratulations in difference market consumer Las Locals bit, up in South. you consumer the a between Las saw the dig of love great you with XQ Keith, the or behavior the what in I'd Midwest Vegas softness little spend Downtown onto parts

to customer to market. seeing I know that come are the you different in the Maybe destination lower end is the softness? has the the Where business at was end you And of out how Is the called database? at back. of you're the Locals certainly maybe I it your higher sort the database, strengthening slow regional of gaming of recovered earlier. get would subsector consumer. just looking love

Keith Smith

Sure.

comments, guests Las So again, also talked attendance once we've with the look, That through results. grow. exceptionally I but of performed as look, Downtown quarter some we've the our out-of-time helped continued prepared business, our to Locals this about during think in visitation boost well the and convention Vegas

are of so And those well. both doing

our in very locals Las Vegas. many segment. to Downtown Locals a We strong have component obviously Locals get We don't

of different a so it's customer. a And type

and Littlemore Midwest types situations that go with little through we've believed, you these of South long therefore, the they're a Vegas markets we've COVID, through And commented, and do those that a markets market. been been believe mature. quicker. in like We have Las where than longer dislocations recovered the recover You

slowing others. And down before so bit maybe just a they're

December was softness. I difficult Midwest both look that southern just about in the the comps weather was XXXX said, the the what And our you of talked the there properties. compared in South, early But quarter. and When XXXX, some outside softness as to really we some at impacted that

through half and continue it the recover January. of into of and second started end to quarter the the in recover the quarter, to And

think So, I the The negative there's It back. there. to was softness real started come get early trend in don't any quarter. ones

say. So, much I not can more I think

Joe Greff

Great. excess And regional, would Locals year and grow that or internal maybe looking budgets, you your in core market when and net you would net portfolio? about Vegas think Midwest expect the revenue at South forecasts Las the of this

Josh Hirsberg

Hey guess I I that to Joe, take this Josh. get is one.

back at coming where feel do XXXX. business the delivered X% are I generally little think look I and I line in or with our down we consensus or about we step from where think And coming a XXXX, they're we we feel better. can think X% and into like like in estimates results that

consumer I going over growth that to think we it the will Locals. Las be relative year. with segments, of some Vegas for as of in see to the what growth of kind move we're but in we're XXXX opportunities not -- the goes we happens But down say to that it's really if that those I'm how through both the to sure -- it's down, consumer It marginally XXXX. ready uncertainty see only so

Joe Greff

Thank you.

Operator

you. Thank

Our next Santarelli from Carlo Bank. question with Deutsche comes

You proceed. may

Carlo Santarelli

to my the earlier. I you Keith, $X fees taking and X or $XX comments, for one-time management $XXmillion, back something fee, of you made just Thank true-up a in to circle question. wanted were Sky payment was online the for million with there I River million. believe

If out the of the math believe half fourth $XX segment more a I for or million in out or results that down less double-digit XXXX, XQ in you back does EBITDA quarter? more less the implies or and like kind back that imply then of that it

that kind that where broader much how relative decline, not of right, malaise those saw you how for would you to necessarily early kind of rating would -- the the but what run were would that's If say, that you weather, you of maybe out? quarter parse in you January

Josh Hirsberg

Yes.

it, try it's shot little than probably more you as art a at take to science, Carlo, a So bit I'll imagine. and can

things was in had the were Mississippi more robust identify communicate to we we that of could some around that and like kind the think around seen we business we felt tried I that weather, what comparison made year little more of fourth difficult year. really a relevant that the And quarter. more more in the first visible the that this of there was then was half something kind Louisiana there last leftover or

where try That half something it to extent before. that's And was into in we prevalent really seen was on. weakness the our really customer. to the really what hadn't we It and our was going see And dig of quarter. in first was customers abroad-based largely any

for as I and And of as was and weakness -- those of move And say us. -- then then the lot markets Louisiana and a through so concentrated in we two would we we move got those better and able the sequentially were very obviously, time, board. trend over quarter, And of see -- strong know week to the the year across that Mississippi last track we was improved. then the

as also saw drive helping And business out-of-town we from Las we before, of Vegas. kind mentioned contributions

So, really continued. came easy recognize good. kind was December there's trends of from the as was -- a we Business late January, there an fairly into comparison. the We

comparison So, certainly it's good the bit is a through should business. how off and trying hasn't deep fallen doesn't little the -- customer to customers like you're be can good it the tell you is how like end. the versus What it we the dissect feel

our and weakness us, Vegas us. Las outside momentum early trends continue October. Vegas to And as good also regained on, base very that although of general Las customer the was the And primarily in our core of and for well, it to customer kind some of build in had quarter, encouraging remained through

be as okay then what in the really back a month, over right a a quarter on. us. a good the month It And direction ended things that's I year, strong in quarter really we and happened there'd it heading of strong quarters, and and was well. then look a earlier sorry, month, quarter an different up for the as would soft So, -- that's quarter, fourth going a soft lot say in and just of quarter,

can fourth at trends sure not place extrapolate customer we the a what quarter, happened a lot but the we I'm saw that's that perspective. So, where we're from our from in

Carlo Santarelli

would leverage want And point correct? Josh, you around tying commensurate last not able your back range. with certainly, traditional guys X.X% and helpful. that's your relative Understood, the imply, you to whatnot, last It buyback, less EBITDA maybe buyback. kind do you say, year's numbers on -- to to but moving target leverage to the similar look when but and or more be I something then net debt, buyback, that you year's So, and would obviously, at of the just to

quarter kind any kind get does And that a that goal of of you previously Is million on remain about, $XXX that thinking that about more have the aggressive? guys it? dislocation how you're talked

point guys, just advances I that did And was $XX of an like million things expect I million as development still interest at going come year. in wanted to those thought, the notice then an there I $XX you or two aside were payment. understand to payments some that, Tribe to cash you had if linked to And year. this to were if this

Keith Smith

is So, Keith. Carlo, this

been You're per the for we're million $XXX $XXX targeting quarter. We've million, ofXXXX that buybacks. right on majority we the share and communicating targeting remain

If there anchor to sheet, a have of than strength then to continue million are we opportunity right some in dislocations, flows, given but cash the the strength we quarter. $XXX to our want do around that, people of our balance more

just talked kind will we'll that plays higher will but we the to don't than that, that see then be that. it about continue. top dividends how we set of of on And So, want out, expectation an that

you're company development cash to those second advances, this year, see The start to repaid we see has being will those into to we'll great property half and the later flow of start, In year. repaid. year. a terms been off see right, of Probably start the that this we'll

Josh Hirsberg

that what reserved is all we of you to Carlo, advances we Yes, Tribe. made were have referencing had the our

And associated the was so opened, risk casino reduced. once the

in, down that part line. recovery think, shown the so of and half in income interest was was other in preopening I the -- interest And shown as

got was to that payment of on that's us. actually up So, cash out picked what

Carlo Santarelli

Great. Thank you guys.

Josh Hirsberg

You're welcome.

Operator

with of comes next Thank Shaun America. you. Kelley from Bank question The

Your open. line is

Shaun Kelley

features, said to of Keith, And the moving one transition next it over your some in-house Thanks the platform. Josh in Keith, believe, just sort everyone. my gaming area think, months. I couple question. the for taking of was for you online you me afternoon of called good of I Hi, out or was

Can does operations you you that allow Or a economic back to start little material of is about talk that just amount going Is incremental transition to take play a there? -- that consolidate to the kind implications in-house? as bit through of how you EBITDA? those

Keith Smith

Yes.

the I midyear So, of couple months, in think probably we'd of in that sometime terms when happens. expect next transition to that occur

As we what you maybe XXXX expect think to the is about you transition and probably as you'd I -- change early we'd them. ask overall think XXXX, economics no expect in

there'll transition, platform, some breakage people over grow start any our be With as we to start to and to differences it. we move slight

So, able then economics, will fully by using probably in the from Near-term that should flat and level, in a grow our build first be near-term. the do more flat. year, and higher to databases it We it that be but there. to consolidating we'll not expect

Shaun Kelley

it Great. everyone. That’s question. my Appreciate only

Keith Smith

Thanks Great. Shaun.

Operator

you. Thank

Our from Wieczynski Please Stifel. with next question comes Steve proceed.

Steve Wieczynski

Yes guys. Good afternoon.

ask and January anomaly maybe more figure trying into tied canceled So, January on whether from December or in social but January. delayed benefiting by go recovery give you've to rebooked South security of -- recovery January mean I'm the weather, And out being saw was or how January. or because color just more Midwest I I'm little this, higher payments. you a in you it's can and recovery the recovery that was do in that trips to that I is, not you the want that real? back with really seen to January was And to an what that to the sure think

Keith Smith

January, in still QX easier out. January, about -- in People Nevada. comparisons in you We So, out weren't some think were the look, of mask in are and quarter, Steve, coming frankly, here the we Omicron mandates. year, fully as have because last early particular, in coming

both the Nevada accelerated. in And across business the and here of the the second half MSR, quarter,

fairness, the comps so And January quarter. later little in are than easier a in

the what look just the we any think they to half performing, as we performing is and comparisons differences year-over-year raw is trying early didn't and customer see were was customer at second trends and how meaningful QX we set how look performed communicate the at in customer in aside January. of I how

just of about it is of kind think how sequentially year-over-year comps, think So, ignoring -- looking that. we more

Steve Wieczynski

Midwest maybe then, the margins us Okay. moving forward. think fees should wondering if just given in now and and the how segment online just Josh, help you management trend South Understood. includes And in about the that could segment there,

Josh, expense if not two could I'm corporate you'll sure maybe and help us, it if this also but I interest with expense And ask to us give year? questions, housekeeping

Josh Hirsberg

Sure.

the behalf for that So, that remember, we license of are expense then revenue pay this FanDuel a pass-through XXX% of them have in as on margins operate, jurisdictions we terms the as the up us, in an taxes have we enormous from because essentially of amount that that and shows we as and well.

margins So, that our dilutes pretty significantly.

now pass-through, at last Boyd margins. XX% to about to the year, and then share, all of which year six So, revenue put Pala, XX%. in it tax margins our that's online online XX% is were just perspective, Interactive, the about This just the piece, weeks is which

kind will will those pass-through that's today. impact continues that tax continue to how So, it our it -- of to is much margins. all And it depend how because on grow dilute

that terms question, that there's in we'll and if answers think free feel to try to elements other answer. note, you want -- hopefully, so to of but ask, I

expect think I terms largely balances but we debt of think to of course, your we this in interest debt expense, EBITDA, our balances our depends fairly would remain expect on would of consistent. I projections --

are any rates to going changes projections XXXX. in your interest of interest be into purely So, on based expense

the elevate then kind QX. in different to bit. little of be run of going our is to expense probably, than rate probably going So But up, if was materially they're think interest not reality, in a you where it

$X of million XXXX $X then be for or probably I think of to in XXXX. And good million what number terms would than in a we corporate mean, expense, about saw kind higher

that's hopefully, helpful. So,

Steve Wieczynski

Thank Appreciate perfect. it. That’s guys. you

Josh Hirsberg

Sure.

Operator

Barry with from Thank next you. Truist. Jonas question The comes

m ay You proceed.

Barry Jonas

talk Great. the the about can given sale of today? capital are maybe you Thanks. form markets M&A broadly where Thanks. environment How there? just do you financing about out a Guys, as think leaseback

Keith Smith

at strong us our to there, your other I they're question leasebacks, about financing look -- our we we given transact continue and pay are we that or for a sheet of out probably Well, don't If cheaper we that believe, can have forms strong of need leverage, more we all, financing. balance pre-payable, specific our did, given really forms think forms of to down. of think sale well, financing first that traditional balance to

of we that So, looking days. these ourselves kind don't find at

things M&A, quiet out don't from perspective, terms it's In But has know, maybe kind my heard don't of I Josh I there. know, of haven't. I

Josh Hirsberg

I tell you everything I hear, Keith.

Barry Jonas

Nevada strong. results, great. to really Okay, just follow-up. And

think gaining from share you market exactly. if match strength. you're reports curious The way doesn't Locals state or Just up sometimes the benefiting just

you're curious a So, just think you gainer or tailwinds share the of from market. seeing sort if

Keith Smith

Yes, I the overall market. think on. I just going the Vegas of it there's share changing a is don't lot think of Las strength

has has think Nothing they're where I settled much everybody is at. relatively environment changed Promotional there. into stable.

So, Vegas it Las the increases in attendance. overall market really is the visitation strength and and of convention

Barry Jonas

Great. Thanks so much.

Keith Smith

Welcome.

Operator

you. Thank

comes from Politzer Our Wells Dan with next question Fargo.

Your open. line is

Dan Politzer

afternoon taking good Hey, everyone. Thanks my questions. for

softness customer? Louisiana that the any with Has There's one, there some just something change the is think you First I promotional mentioned environment? more there. and on been Mississippi. in Josh, been Or going

Josh Hirsberg

our across assets. stable country, Vegas and I'd Yes, Midwest has the been South promotional including in the say Las in environment and

in very XXXX. of -- driver the what year we a not quarters strong last in to even really in those outsized we earlier QX performance of really, seen of saw assets, that's So, had a superior

to something of with to issue, hurricanes, kind have was And a I or really hard really do had could but that's quantify. with -- what on going just weather it's just comparison-related

that so what those of sequentially XXXX, far -- difficult more the little So, we for assets. that's a quarter. was made just bit for kind really through strong those portion fourth setup for in know the region a of QX that And

Dan Politzer

then And just clarify it. to Got I something. wanted

think about of as higher and growth kind actual digital, levers your the the River, XXXX, environment, compared for for and I Fremont to comments your then return to think on overall XXXX back the XXXX. So, Sky obviously EBITDAR organic I just

Or the or so I thought mentioned Street just I given overly growth you clarify, there? was X% levers? you conservative want was to X%, when the that am something misinterpreting down estimated

Josh Hirsberg

our find the think we to because is relative business to uncertain we that to I relative of Street's just think we consensus feel I ourselves. good environment going would what say is trend where the

We kind I on We year opportunities of of online kind for a things. some get side you of the see of think the where -- -- Wilton. we identified full adequately of get expansion growth.

to -- got and loyalty depending that's amenities, non-gaming will how demand to F&B, of continue the on hotel the had as feel continue consumer customer. our feels year, for an opportunity be feel XXXX, and rest as trends and gaming overall for we've for both we well we've opportunity we And grow increasing an like the also that to

not over I remiss to we're those good I we But be returns other easily look, that are in like We're to the -- of small big think find committing the that expect thing taking company the our in that ourselves. think capital to bets. for accumulate really something time, that we a not meaningful generating but and is amount investments we're making us, business current large is environment

some and us in kind prepared what years, that be we was gives comfort that in for were communicate of two this trying that performance last that the been we've operating kind all makes of we're going So, our sense. Hopefully, of that at level of remarks. to to

Dan Politzer

one. one last sense. housekeeping makes And that just Yes,

I think a the stuff. about past, Sky talked Is in that out River the and/or segmenting digital consideration? still you've

Josh Hirsberg

acquisition it is our first -- as Pala. well some will become out we'll which our of historical you Lattner have going and as Wilton to then a well. do the yes, share, the online, Entertainment. will And which break pass-through and perspective with quarter, We're what to give Yes. plan Interactive to other, include managed tax revenue Boyd include as in likely We we're most

Dan Politzer

so much. Great. Thanks

Josh Hirsberg

Sure.

Operator

you. Thank

Katz comes question Jefferies. David from next with Our

is open. line Your

David Katz

competition any? Did those all so contemplate could you've my any on prepared thanks that the points moment? taking mention reflect just there. and touch touched but you for discussed for gentlemen are far, we but if question. just model, Apologize want also our out a Or to the in positives of sure you on this we remarks, through as afternoon we go Hi, I make

Keith Smith

we talk So, competition broadly. didn't about more

we're probably there couple into where XXXX, we at of I look areas. are think today as at a and

hurricane So, been it property been it a impact, rebuilt known as some Lake in December. for much I Delta than a competes but from That obviously days. open opened was closed Charles. Horseshoe a little opened damage, It's haven't the property. that of really is our that think XX in incremental an seen while Downs it's with It's less competition. I had well

Indiana last business In at space do the of a year. incremental We opening bit Bend of a get is Bend, there. casino our little property Blue four called some Winds, competition adding hotel in wins out South some South Chip property, or expanding expanded in so South a

Park of of And outside impacting They have there then half second just Belterra HHRs in the existed the Ohio. Kentucky in Cincinnati, been XXXX.

the from see a HHRs. those than additional that, XXXX no we'll significant of bit throughout Other other So, portfolio. in early impact competition little there

David Katz

Thank on quarter. much. you your Congrats perfect. Okay, very

Keith Smith

Thank you.

Operator

you. from Ben Chaiken Thank Suisse. proceed. question Please next comes Credit The with

Ben Chaiken

basically guess do you is back about in with a they of the said hand, think the how the Obviously, I X established I months So, and takes brand mid-XXXX, you. Hey, you customers? I retaining integrating. the in earlier, You have on in what loyalty. it few taking think How brand Stardust going? wallet those mean mentioned is, vertically puts

the been well. that, running who's hand, as wants presumably, other customers FanDuel, On those

care like idea any at just retention or take do you to So, shot? net-net, a have

Keith Smith

to over, that why once I will not And when No, expect a asked year, I the this that's about care earlier do first economics the take not little saying, shot. be kind economics, take change. the we in of Expect bit to look, conversation the breakage. a we're in there

breakage what thing XXX% operating because we and from of learning it we this made the will a that business, be ourselves a our on make And revenue will own running marketing same as and FanDuel, with the perspective. share it ramp-up

be ramp large we're think Hopefully up a and to the we're the we'll we're of it of year, I certainly in, launch but same competitor, first expecting and database exist better, we'll markets we markets, to for tough then have -- in FanDuel but to going those a in customers continue will kind there. from do fine.

Ben Chaiken

And That's $XX million you guys for the million was right going I the then bogey the management Did thrown million, $XX River. the the helpful. believe number? in Or previous I property mistaken. sequentially not or is what you to if was kind accelerate? out there this made fee is have XXXX comfortable appreciate of $XX inflection I'm it. that Sky

Keith Smith

I specific in I think We under million $XX we belt. last enough I to had property $XX it didn't when have a million $XX given time guidance, recall opened or was The don't simply $XX August. our think to early. million million, our

got in, drove of under management five see of January. December is settled has where it we what the belt, kind see expectation. months our a is That's But just we've that opening which obviously, Now, significant settling the month in QX. in good and our is the opening we kind -- and the current in, strong, where fees in extremely

Ben Chaiken

last it. the Then housekeeping-- sense. Got Makes just

Keith Smith

Said conservative a another been way, they little have last--

Ben Chaiken

appreciate Totally the like year you. you full for Or Thank you? say digital of And million just mishear last did that EBITDA? it. Did was I housekeeping. then XXXX, $XX

Keith Smith

No, you heard correctly.

$XX whole the was So, betting, bit including million. online, social, sports

Ben Chaiken

much. very you Thank Great.

Keith Smith

Welcome.

Operator

you. Thank

DeCree with from CBRE Our next John question proceed. comes Please Securities.

John DeCree

my taking guys. Hi Thanks question. for

think quarter seen X I quarter, Mississippi, a a a of some has Louisiana, change trends exiting as you you of you are what already, first visit saw about covered the those what pretty or Or and half with You fourth of in the kind of lot consumer per progressed? consumer markets, fourth patterns. then but pattern there you've know across seen? the the been just quarter guess but I more guess behavior? as spend the out shift have cohorts in called maybe on maybe visit you or ground demographic kind consistent infrequency of I of

Josh Hirsberg

John, this is Josh.

we out really we we calling thought half a think that what broader it thought the quarter, saw across in segments. So was all I the customer merited softness of first -- the reason

that Now, had in the continued be what second we and QX up more January. in quarters reverted to to leading seen half the like into

has part that's and part January. quarter what or then the makes the picked with last there's what it just of happened not determine into business hard again, the really of relevancy the So, of week quarter the kind any back first to up like year in to because continued the best the if being of

But of part just November like don't-- I think we and our what the in the broader a a company that into customer. entire portfolio, very was bit saw than southern just October across little also more something late weakness around but in I concentrated

Keith Smith

age whether out. worth calling or you're asking kind shifts of if I the Yes, worth no about specific segment, of that are think components that database, be specific by it occurred

Josh Hirsberg

into of kind half kind the left picked It where the up Right. got when off quarter. of of back second it you

John DeCree

of big kind appreciate kind seasonality online at conjunction gaming that the Maybe the players follow-up, then segment Sky schedule? in sports online gaming BXC gets that of going the then River? we to And I that. kind we for of seasonality of assume should year? easy Josh. would Understood. mirror with the Should of kind and River it. reason Got X expect any your Sky Any expect

Josh Hirsberg

we that Yes, revenue that's received seasonality I I share think mean the in have we right. today.

seasonality, fairly in quarter fourth quarter really this and was then strong, being being the obviously, So, strong, being that$XX typically definitely with first soft. there million that third we quarter received year,

just Wilton expect, kind there for probably revenue would that given of in that or what's net termed expect. you're Sky of I percentage River, be a business, to seasonality revenues wouldn't much I just won't getting

John DeCree

the That’s quarter helpful. Understood. year. really great and guys Thanks on and congratulations

Josh Hirsberg

Thank you.

Operator

question you. next Thank Brandt The from with Montour comes Barclays.

You may proceed.

Brandt Montour

ground. taking evening a covered good of for everybody. question. Hey Thanks We've my lot

Just one for me.

segment, On of I years. business three you that the the Downtown had last you also Hawaii the all look compared guys noticed fully margins that high really noted that recovered. record to

from we quarter? margin you to fully that's that currently prior is, new should full then in seasonality think you fourth perspective, benchmark at but the operating outside recovered maybe at this Hawaii? do question segment, guys of the be the looking that, My are normal And

Keith Smith

much there be the business. Vegas Downtown, to and winter respect fall softer that and with to look, like business, tends the Well, little is seasonality a Las to clearly bit tend Summertime seasons stronger. in be

should expect seasonality that exist. you So, to

that gotten in produced we business. than comfortable withgoing a we've QX, that charter kind we're margins significantly years have as few forward, business, out The the of higher of ago yes, rightsized

will there seasonality. place, good probably getting are margins and in be a ones So,

Brandt Montour

Okay. ask way I was question. it convoluted the realize to a

the appreciate Thanks I answer. So, everyone.

Operator

Thank you.

final with comes Susquehanna. Our from question Joe Stauff

You may proceed.

Joe Stauff

Thank Josh. Keith, Hi you.

those of, say, segment? Can and just segments. Regional importance Las Locals Just that what consumer saw, a question core you in us in especially given of that levels terms your you on give the spending saw, of Vegas you and the

Josh Hirsberg

color to right I direction. hopefully, you give point some can you and in the around this it, try Joe,

for that a just I think, in Locals, stronger of demand a non-gaming our big demand aspect well look, strong out-of-town amenities, I among demand opening Vegas said our think from his prepared the for Keith growing Las customer benefited particular we necessarily business business. our as as amenities, really or remarks, -- as more not

We largely kind again, well, primarily in get quarter. from our saw we supported we core as through also continued to January And -- that healthier of a not that's strong by saw well. customer business, move Vegas, Las as business only out-of-town just the into continue core

very all watch their remained kind So, we as as frequency really lot progress a has the on through. with we're spend, focused core of and we serving That if us. We not, slightly and that move customer that's consistent quarter, customer. of improving worth through

on. going gives of that you what a hopefully, sense So, was

Joe Stauff

XXXX? question. choppiness, fair elsewhere haven't during me? And to level like maybe discussion of fourth the quarter. really kind that of -- the just Can about say Is you in it seen you Obviously, final like choppiness choppiness remind initial that just

Keith Smith

would question -- to answer. it's a hard I

in say what the that the in that's is a necessarily as some We items, if to forbearing whole you -- quarter. want to explanation out alluded the any a quarter, happened I we some early something soft come. there's be to going We And that's issue was had didn't we to month. in to softness hear think but quarter. know the I just us don't the earlier, of for called

we a that first to that soft seems quarter, highlight wanted That's start January all. to we just have Second the something half was aware and quarter, But kind be wanted to that be of the to aware did offset belief. folks. we that of just to and people to investors

that least of soft, look wouldn't come at each in quarter would there year back was it largely, and last say you this if year, back. even at I each one was quarter And and month then

to aware also I of don't sure we to I to people too much well. anyway, -- expect make So, performance for to year our able at obviously, to of for around our -- to we as us. based it, want XXXX, of be on remarks and do we continue it consumer want out levels perform to are continue we for kind expect next mean I make there that. But the these be expected need as but

So--

Joe Stauff

very Thanks much.

Keith Smith

Sure.

Operator

Thank you. There I it are no further Hirsberg at to questions will this back over foreclosing-- Josh time. pass now

Josh Hirsberg

If to really the I it, today to free questions. I good with all everyone company. Tamia. feel Thanks, there's appreciate and call follow-up, appreciate the any participating please Thank reach out in you.

Operator

This concludes the your conference call. for you participation. Thank

your You may disconnect now lines.

Boyd Gaming (BYD) 2 Feb 232022 Q4 Earnings call transcript